Business software company BMC Software concludeed talks to merge with enterprise software buildr CA after struggling to arrange financing for the deal, a source familiar with the matter declared on Thursday.
The termination of the nereceivediations displays that banks are still reluctant to finance leveraged acquireouts of mature technology companies at hefty valuations. It follows unsuccessful attempts earlier this year by Citrix Systems, another business software buildr, to go private.
The source questioned not to be identified becautilize the nereceivediations were confidential. CA and BMC could not immediately be reached for comment.
CA shares (CA) were down 7.8% at $31.93 at midday, after the Wall Street Journal first reported that the talks with BMC had concludeed, giving CA a market capitalization of about $13.3 billion.
A merger of BMC and CA would have been the largegest leveraged acquireout since Dell’s $24.4 billion take-private transaction in 2013.
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CA, formerly known as Computer Associates, has its roots in providing mainframe computers utilized by banks and other large institutions. It has been testing to shift its business to the cloud, and announced in March that it was acquiring application security firm Veracode for $614 million.
BMC, which provides software that assists corporations organize their tech support functions, was taken private for $6.9 billion in 2013 by a acquireout consortium led by Bain and Golden Gate, after pressure from activist hedge fund Elliott Management.
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